KARACHI: The State Bank of Pakistan (SBP) reduced the Special Cash Reserve Requirement from the current 15 percent to 10 percent of total foreign currency (FE-25) deposits. For Cash Reserve Account ($), the SBP has set it at 5 percent, while for Special Cash Reserve Account ($), it is set at 10 percent. This reduced requirement is expected to temporarily provide a liquidity cushion for banks. This is unusual, since the combination of Cash Reserve Account requirement at 5 percent and Special Cash Reserve Account at 15 percent, has been more or less unchanged since 2002. 14 released by the SBP’s Banking Surveillance Department in December 2007, the Special Cash Reserve Requirement was brought down from 15 percent to 5 percent.

Source: Pakistan Today April 18, 2020 03:45 UTC